Ghanaian Govt. Emulates Nigeria, Sets Sail for Treasury Single Account
In line with positive effects of the implement of Treasury Single Account (TSA) in Nigeria, West African neighbours, Ghana is already towing the line as the country appeals for support from the banks and citizens to make it work.
The Ghanaian Vice-President, Dr Mahamudu Bawumia speaking on behalf of the government appealed to the commercial banks in the country to lend their support in for the benefit of the nation. The vice President reiterated government’s commitment to fully implement the TSA. He said there would be no turning back on its execution.
In a speech read on his behalf, Dr Bawumia said that after a number of attempts by successive governments over the years to implement the TSA, the government was determined to do it.
Stressing that the government alone could not do it and called for support from stakeholders, including the commercial banks to ensure the success of the policy.“I wish to appeal to all the commercial banks to lend their support as they always do to help Government implement this policy successfully for the long term benefit of the nation,” Dr Bawumia said.
The TSA, which is a unified structure of government bank accounts, enables consolidation and optimum utilisation of government cash resources.
It is a set of linked bank accounts through which the government recognises all its receipts and payments and obtains a consolidated view of its cash resources at the end of each day.
Dr Bawumia said the goal of the TSA was not only meant to give government a consolidated view of its cash resources but to ensure efficient treasury management as required under the cash management reform initiatives.
Mr Ken Ofori-Atta, the Minister of Finance, said the launch of the TSA followed the commitment of government to enforce the Public Financial Management Act, 2016, which established the TSA.
According to the Minister, the transfer of the bank accounts of all government institutions to the Central Bank was to ensure the ease of management and monitoring. An estimated GH¢5 billion was with the commercial banks as government deposit.
Mr Ofori-Atta said pulling these resources into the central bank would reduce the risk of resorting to central bank overdraft for government expenditure and would reduce the cost of building buffers for cash management purposes.
The Minister of finance explained that the implementation of the TSA which in its first phase would not cover State-Owned Enterprises that borrow on their own balance sheet. He said those institutions would continue to do business with the commercial banks.
Additional reports from financialtechnologyafrica.com